19 Apr 2017

RBI target: 4,75% plus

The RBI has revised its target forecast upwards to 4.75% for the end of FY18 but the dismantling of the agricultural price maintenance structure, subdued energy prices and the introduction of GST should allow this to be met. Meanwhile, policy rates were left unchanged. The RBI was focused mainly on managing the excess liquidity in the system while keeping an eye on inflation. A perpetual concern is the monsoon and an independent forecasting agency has forecast rainfall of 95% of the long-period average this year with a 5% margin of error. They are predicting a 60% probability of the El Nino effect limiting rainfall from July onwards.

No comments:

Post a Comment